>>reporter: that is true if the live in the state of california or someone like you would works, why know if you live in new york but you work in w york and the tax rates in new york city could go do 50 percent and california as high as 52 percent, we have not seen rates that high since the 1970's. >>neil: leave aside what will happen on health care people forget this is a lot more than just returning to the clinton top rate of 39.6 percent. it is about going well beyond that and the fact that democrats are feeling their oats after the election and saying, look, this isn't about just marginal rates but the marginal rates and this, not either, or, but "and" this. >>guest: that is what chuck schumer said before the election, saying close loopholes and raise the rates at the same time, which is exactly the opposite of tax reform. >>neil: how does a guy like that who represents the financial capital of the world sort that out and its economic impact. >>guest: this is an important point i am glad you brought it up. what is the financial capital of the world? new york wants to be and it ha